We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Organon's (OGN) Earnings & Revenues Surpass Estimates in Q3
Read MoreHide Full Article
Organon & Co. (OGN - Free Report) reported third-quarter 2021 adjusted earnings of $1.67 per share, which beat the Zacks Consensus Estimate of $1.44 per share. The company reported earnings of $2.38 per share in the year-ago quarter.
Total revenues in the third quarter were $1.60 billion, down from $1.61 billion reported in the year-ago quarter. Total revenues in the third quarter decreased 1% year over year on a reported basis. Sales beat the Zacks Consensus Estimate of $1.59 billion.
Shares of Organon were down in pre-market trading.
Please note that Organon started trading on the NYSE following its spin-off from pharma giant Merck (MRK - Free Report) in June 2021.
With this spinoff, Merck received a distribution of approximately $9 billion from Organon, which it plans to utilize for strategic business development opportunities. The spin-off will allow Merck to focus on innovation and its key growth drivers.
Along with earnings release, Organon declared its quarterly dividend of $0.28 per share of its issued and outstanding common stock.
All growth rates mentioned below are on a year-over-year and reported basis.
Quarter in Detail
Organon records revenues under its three business franchisees — Women’s Health, Biosimilars and Established Brands.
In the reported quarter, Women’s Health sales were $381 million, down 10% from the year-ago quarter, owing to a decline in NuvaRing (etonogestrel/ethinyl estradiol vaginal ring) sales, which were hurt by generic competition. Decline in sales of Nexplanon, a single-rod subdermal contraceptive implant, also negatively impacted Women’s Health revenues in the quarter. However, sales of Follistim, AQ Cartridge (follitropin beta injection) were positively impacted by a combination of COVID-19 recovery and increased demand during the quarter.
Biosimilars revenues were $140 million, up 41% from the year-ago quarter, driven by continued demand growth for Renflexis (infliximab-abda) and strong uptake of Ontruzant (trastuzumab-dttb) in the United States. This was partially offset by a decrease in Ontruzant sales in the EU due to increasing competitive pressures.
Established Brands’ revenues were $1.02 billion, down 6% from the year-ago quarter. Established Brands represents a broad portfolio of medicines that are generally beyond market exclusivity, like leading brands in cardiovascular, respiratory, dermatology and non-opioid pain management, for which generic competition varies from market to market.
Research and development costs were $111 million, significantly up on a yearly basis, while selling, general and administrative expenses rose 20.9% year over year to $388 million.
2021 Guidance
Organon narrowed the financial guidance for total revenues it provided earlier this year. The company now expects revenues in the range of $6.2-$6.3 billion for 2021, compared with the previous projection of $6.1-$6.4 billion.
In a separate press release, Organon announced that it has entered into a definitive agreement with Finland-based drug development company, Forendo Pharma, wherein it will acquire the latter. The transaction is expected close in December 2021 subject to customary conditions.
GlaxoSmithKline’s earnings estimates have been revised 8.6% upward for 2021 and 5.5% upward for 2022 over the past 60 days. The stock has rallied 17.3% year to date.
The company's earnings have surpassed estimates in two of the trailing four quarters, missed the same once and matched it once.
Endo International’s earnings estimates have been revised 1.3% upward for 2021 and 0.4% upward for 2022 over the past 60 days.
Its earnings have surpassed estimates in each of the trailing four quarters.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Organon's (OGN) Earnings & Revenues Surpass Estimates in Q3
Organon & Co. (OGN - Free Report) reported third-quarter 2021 adjusted earnings of $1.67 per share, which beat the Zacks Consensus Estimate of $1.44 per share. The company reported earnings of $2.38 per share in the year-ago quarter.
Total revenues in the third quarter were $1.60 billion, down from $1.61 billion reported in the year-ago quarter. Total revenues in the third quarter decreased 1% year over year on a reported basis. Sales beat the Zacks Consensus Estimate of $1.59 billion.
Shares of Organon were down in pre-market trading.
Please note that Organon started trading on the NYSE following its spin-off from pharma giant Merck (MRK - Free Report) in June 2021.
With this spinoff, Merck received a distribution of approximately $9 billion from Organon, which it plans to utilize for strategic business development opportunities. The spin-off will allow Merck to focus on innovation and its key growth drivers.
Along with earnings release, Organon declared its quarterly dividend of $0.28 per share of its issued and outstanding common stock.
All growth rates mentioned below are on a year-over-year and reported basis.
Quarter in Detail
Organon records revenues under its three business franchisees — Women’s Health, Biosimilars and Established Brands.
In the reported quarter, Women’s Health sales were $381 million, down 10% from the year-ago quarter, owing to a decline in NuvaRing (etonogestrel/ethinyl estradiol vaginal ring) sales, which were hurt by generic competition. Decline in sales of Nexplanon, a single-rod subdermal contraceptive implant, also negatively impacted Women’s Health revenues in the quarter. However, sales of Follistim, AQ Cartridge (follitropin beta injection) were positively impacted by a combination of COVID-19 recovery and increased demand during the quarter.
Biosimilars revenues were $140 million, up 41% from the year-ago quarter, driven by continued demand growth for Renflexis (infliximab-abda) and strong uptake of Ontruzant (trastuzumab-dttb) in the United States. This was partially offset by a decrease in Ontruzant sales in the EU due to increasing competitive pressures.
Established Brands’ revenues were $1.02 billion, down 6% from the year-ago quarter. Established Brands represents a broad portfolio of medicines that are generally beyond market exclusivity, like leading brands in cardiovascular, respiratory, dermatology and non-opioid pain management, for which generic competition varies from market to market.
Research and development costs were $111 million, significantly up on a yearly basis, while selling, general and administrative expenses rose 20.9% year over year to $388 million.
2021 Guidance
Organon narrowed the financial guidance for total revenues it provided earlier this year. The company now expects revenues in the range of $6.2-$6.3 billion for 2021, compared with the previous projection of $6.1-$6.4 billion.
In a separate press release, Organon announced that it has entered into a definitive agreement with Finland-based drug development company, Forendo Pharma, wherein it will acquire the latter. The transaction is expected close in December 2021 subject to customary conditions.
Zacks Rank & Stocks to Consider
Organon currently carries a Zacks Rank #4 (Sell).
Top-ranked stocks in the healthcare sector include GlaxoSmithKline plc (GSK - Free Report) and Endo International plc , both carrying a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
GlaxoSmithKline’s earnings estimates have been revised 8.6% upward for 2021 and 5.5% upward for 2022 over the past 60 days. The stock has rallied 17.3% year to date.
The company's earnings have surpassed estimates in two of the trailing four quarters, missed the same once and matched it once.
Endo International’s earnings estimates have been revised 1.3% upward for 2021 and 0.4% upward for 2022 over the past 60 days.
Its earnings have surpassed estimates in each of the trailing four quarters.